Why You Should Never Co-Sign, Part 3
- Published Jun 19, 2018
Why You Should Never Co-Sign, Part 3
You're Putting Your Financial Reserves at Risk
Anyone who chooses to co-sign should be prepared to cover the entire amount of the loan from his or her personal funds. Of course it may not be necessary, but since the possibility of default is there, you should have funds set aside “just in case.” So whether it’s your personal savings or including the amount of the monthly payments in your current budget, you should make provisions and behave “as if” you had to pay that loan back. Best-case scenario, you’ll never have to tap into those funds, but at least you’ll be prepared.
Today's tip brought to you by Mvelopes and Money4Life Coaching.
